The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 12 percent. Note: Round "Capital turnover" answers to 2 decimal places. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income S Division A 1,890,000 24 % 1.00 % S $ $ Division B 41,300,000 8,260,000 10.325.000 % % $ Division C 30 % 24 % 495,000
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 12 percent. Note: Round "Capital turnover" answers to 2 decimal places. Sales revenue Income Average investment Sales margin Capital turnover ROI Residual income S Division A 1,890,000 24 % 1.00 % S $ $ Division B 41,300,000 8,260,000 10.325.000 % % $ Division C 30 % 24 % 495,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Use the following information for the Problems below:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return
on invested capital is 8 percent.
sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
Sales revenue
Income
Average investment
Sales margin
Capital turnover
ROI
Residual income
$
Division A
Division A
?
$ 590,000
?
30%
2
1,890,000
24 %
Required:
The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested
capital is 12 percent.
Note: Round "Capital turnover" answers to 2 decimal places.
1.00
%
Division B
$ 10,000,000
$ 2,090,000
$ 2,550,000
S
$
$
Division B
41,300,000
8,260,000
10.325.000
%
?
?
%
?
Division C
$
?
35%
?
48%
$ 125,000
Division C
30 %
24 %
495,000
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